It is remarkable the disparity in views on display by various markets and what that suggests about what is driving each. In stocks and especially junk bonds, you get the sense of a massive sigh of relief that “it’s all over”, and while scary for a time it’s back to momentum and not missing out on the big money bargains. That is clearly the theme in the junk bubble, as if liquidity stopped being any concern at all once the “buy” signal was reached on February 11; it’s as if it was a starter pistol for momentum and risk chasers.

If that was all you knew of markets, then you would be shocked at the persistently negative disposition across a far broader survey. In “dollar” and funding markets, it’s a drastically opposite condition and uniformly so. Much more here (subscription required).

SABOOK Apr 2016 Nothing Changed Eurodollar Curve Recent